Most of the $33 Billion in Remittances to Mexico Flow Via U.S. Govt. Banking Programhttps://www.judicialwatch.org/blog/2019/04/most-of-the-33-billion-in-remittances-to-mexico-flow-via-u-s-govt-banking-program/
Though President Trump said he would block money transfers to Mexico to fund a much-needed border wall, Mexicans in the U.S. sent a record $33.48 billion in remittances last year and a big chunk of it flowed through a government program operated by the Federal Reserve. This means that, amid an onslaught of illegal immigration, the U.S. government is largely responsible for the billions in remittances flowing south of the border from illegal aliens. Figures released by Mexico’s central bank show that 104 million transactions were executed in 2018, nearly six million more than the previous year.
Uncle Sam facilitates the process with a program called “Directo a Mexico†(Direct to Mexico), launched by the Federal Reserve, the government agency that serves as the nation’s central bank, more than a decade ago. President George W. Bush came up with the idea following the 2001 U.S.-Mexico Partnership for Prosperity to provide low-cost banking services to illegal immigrants and facilitate the procedure for those sending money home. In its first year, 2005, remittances to Mexico topped $20 billion and the Federal Reserve reports “double-digit percentage growth for the past several years.†Remittances are transferred through the Federal Reserve’s own automated clearinghouse linked directly to Mexico’s central bank (Banco de Mexico). The Trump administration should eliminate it because it undermines our nation’s immigration laws and is a potential national security nightmare.
Back in 2006 Judicial Watch investigated the outrageous taxpayer-subsidized initiative and obtained government records that shed light on how it functions. Marketing materials target immigrant workers in the U.S.—regardless of their legal status—as well as banks, credit unions and other financial institutions. The program is promoted as “the best way to send money home,†offering “more pesos for every dollar.†American financial institutions are charged $0.67 per item to transfer money from the United States to Mexican banks, ensuring a “highly competitive rate.†The Federal Reserve also provides participating U.S. financial institutions with Spanish language promotional materials to “help get your message out.†The marketing materials also include the number of Mexican migrants in the U.S. with no distinction between those here illegally or not. A separate list identifies thousands of Mexican banks receiving “Directo a México†transfers....
